MK Announces Year End 2009 Operating Results Profit Soars 36%

Despite shrinking housing market, the company's net income soared 35.52% to Bt 539.77 million, resulted from revenue growth and effective management. The company's strong financial status is reflected by low debt to equity ratio and high liquidity.

Mr.Chuan Tangmatitham, President of M.K. Real Estate Development Public Company Limited (MK), "Chuan Chuen" and "Serene House" project developer, revealed that the company has realized Bt 627.77 million revenue from sales and services in Q4/2009, 3.04% increased QOQ.  Annual sales & service revenue stood at Bt. 2,497.09 million, an increase of 15.72% from last year despite the fact that housing market has shrunk by 16% or so. Main projects contributing to sales revenue were Chuan Chuen Modus Chaengwattana, Chuan Chuen Wacharapon, Chuan Chuen Pracha-Uthit and Chuan Chuen Petkasem. 

In 2009, MK has earned Bt 1,014.92 million in gross profit.  Gross profit margin rose to 40.64%, comparing to 38.74% of 2008, as major projects recognized were of high profit margin coupled with effective cost management.  Selling expenses dropped from Bt 72.27 million last year to Bt 65.10 million because the company were not entitled to tax privileges in Q1/2008 hence the special business tax rate applied then had been 3.3% while the reduced rate of 0.11% was applicable for the whole year of 2009.  The Company has managed to control our expenses while earning higher revenues, hence our SG&A to sales ratio dropped to 10.86% from 12.31% of last year's.  After interest and income tax, MK's net income of 2009 stood at Bt 539.77 million.  It is our highest normalized profit, growing 33.52% from Bt 404.26 million of 2008.  Net Profit Margin was 21.40% growing from 18.54% of 2008.  Earning Per Share was Bt 0.63.  This outstanding operating result reflected growth of revenue, better gross profit and SG&A efficiency.

MK's financial position has been continually strengthened, reflected from debt to equity (D/E) ratio dropped from 0.43 times at the end of last year to 0.30 times.  This reflected a strong financial status, in accordance with high surplus in net operating cash flow of Bt 793.27 million.  Meanwhile, assets slightly decreased from Bt 6,166.40 million at the end of 2008 to Bt 5,986.96 million, as a result of inventory decrease due to title deed transfer.  Liabilities dropped by Bt 492.11 million, from Bt 1,859.00 million to Bt 1,366.89 million due to debt repayment; meanwhile, shareholders' equity increased by Bt 312.67 million from increasing profit.